Woke Porsche Faces Record Low Shares after weak EV demand

Porsche AG’s shares in Germany hit a record low today after the sports car maker announced it would scale back its electric vehicle (EV) plans. The company scrapped a future battery-powered luxury SUV, focusing instead on petrol and hybrid models. This shift will cost Porsche $2.1 billion in operating profit and force both Porsche and its parent, Volkswagen AG, to lower their yearly forecasts.

–by Mark Cipolloni–

UBS analyst Marisa Vethanayagam noted, “The STOXX Europe 600 Automobiles & Parts Index fell 2.8% after Porsche and Volkswagen issued profit warnings on Friday. Porsche shares dropped 7.8%, and Volkswagen fell 8%.”

This marks Porsche’s fourth profit warning this year, with shares down 28% in 2025. The slump may lead to Porsche’s removal from Germany’s DAX index. Weak EV demand in key markets and growing competition from Chinese automakers are adding pressure on Volkswagen, which reported a $3.5 billion non-cash impairment and cut its 2025 operating return forecast to 2-3% from 5%.

Other European automakers, like Stellantis NV and Renault SA, are also facing low EV demand despite heavy investments. Wall Street analysts commented on Porsche’s pivot:

– RBC (Sector Perform, €43 target): Analyst Tom Narayan said the changes highlight near-term challenges, with delays in EV platforms and a shift to hybrids signaling issues in Porsche’s electrification strategy. Updated 2025 guidance shows a sharp profitability drop, raising concerns about competing in the premium EV market.

– Jefferies (Hold, €40 target): Analyst Philippe Houchois noted that while this may be the final guidance cut, Porsche faces a long recovery due to product and brand challenges. Volkswagen’s guidance also delays cash flow improvements.

– Citi (Buy, €58 target): Analyst Harald Hendrikse called the revised 2025 Ebit margin of 0-2% (down from 5-7%) unacceptable for Porsche’s brand. Investors remain skeptical after repeated negative surprises.

Independent analyst Matthias Schmidt told Bloomberg that buyers are losing interest in luxury EVs, prompting Porsche to return to high-margin combustion engines.

In the U.S., EV interest has fallen to 16%, the lowest since 2019, per AAA’s 2025 survey. High costs, limited charging infrastructure, range concerns, lower gas prices, uncertain EV incentives, and political factors are deterring buyers. Only 16% of Americans are likely to buy an EV next, down from 25% in 2022, while 63% are unlikely to, up from 51% last year. Hybrids are gaining popularity as a practical alternative.

AAA’s Greg Brannon said, “Consumer hesitation persists despite the industry’s push for electrification and diverse model offerings.”